3. The L Corporation purchased 90% of s, Inc. shares, on January 1, 2016, for $265,500 cash. Several S's accounts have market values that differ from their book values on this date: Fair Вook Market Value $ 20,000 Value $ Land. Buildings. Equipment.. Notes Payable. 60,000 40,000 50,000 70,000 80,000 30,000 55,000 Required: Prepare the journal entry to record the purchase and a consolidation worksheet at the date of acquisition based on the following information: L Dr. Cr. Cons. B/S Cash.... $ 65,500 $ 16,000 52,000 90,000 -0- 116,000 144,000 265,500 210,000 640,000 308,000 Receivables.. Inventory... Investment in S. Land . Buildings (net). Equipment (net). 20,000 60,000 40,000 Total Assets. 1,749,000 278,000 $ 88,000 Accounts Payable . Notes Payable.. Common Stock. Retained Earnings.. 510,000 380,000 771,000 $ 8,000 50,000 80,000 140,000 Total Liabilities and Equities.. 1,749,000 278,000 %24

3. The L Corporation purchased 90% of s, Inc. shares, on January 1, 2016, for $265,500 cash. Several S's accounts have market values that differ from their book values on this date: Fair Вook Market Value $ 20,000 Value $ Land. Buildings. Equipment.. Notes Payable. 60,000 40,000 50,000 70,000 80,000 30,000 55,000 Required: Prepare the journal entry to record the purchase and a consolidation worksheet at the date of acquisition based on the following information: L Dr. Cr. Cons. B/S Cash.... $ 65,500 $ 16,000 52,000 90,000 -0- 116,000 144,000 265,500 210,000 640,000 308,000 Receivables.. Inventory... Investment in S. Land . Buildings (net). Equipment (net). 20,000 60,000 40,000 Total Assets. 1,749,000 278,000 $ 88,000 Accounts Payable . Notes Payable.. Common Stock. Retained Earnings.. 510,000 380,000 771,000 $ 8,000 50,000 80,000 140,000 Total Liabilities and Equities.. 1,749,000 278,000 %24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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10 On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At that date, the equity of Marcus was P4,000,000, with all the identifiable assets and liabilities being measured at amounts equal to fair value. The table below shows the profits and losses made by Marcus during 2015 to 2019: Year Profit (Loss) 2015 200,000 2016 2,000,000 2017 2,500,000 2018 160,000 2019 300,000 How much will the Investment in Associate account be debited/credited in 2018? Group of answer choices No entry P40,000 Dr. P1,035,000 Cr. P1,060,000 Cr.
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Tiger Ltd. has an authorized capital of 700,000 $1 ordinary shares, of which 300,000 have been issued as fully paid. The following information was extracted from the accounts for the year ended September 30, 2019: Details/Accts. $ DR $ CR Motor Vehicle at cost 1,750,000 Acc. Depreciation Motor Vehicle 450,000 Freehold premises at cost 400,000 Carriage inwards 35,500 Sales 4,500,000 Stock, October 1, 2018 95,000 Administration (Wages and Salaries) 170,000 Distribution (Wages and Salaries) 250,000 Motor vehicle running costs 350,000 Purchases 935,000 Returns inward 32,000 Returns outward 51,000 Directors’ remuneration 865,000 Auditors’ fees 120,000 General administrative expenses…
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As of December 31, 2014, Kaman Corp. held two Equity Securities. Information regarding these securities is as follows: Secuirty Date Acquired Acquisition Cost Market Value (12/31/14) A $35,000 $88,000 B Based on the information given, create the journal entry that would be recorded on 12/31/14. For each line item of the journal entry write whether it is a Dr. or Cr., the account name, and amount. 1/16/14 2/22/14 $36,000 $79,000
Case A: On January 1, 2021, your company purchased 60,000 shares of Freeze Company's $10 par common stock for $26 per share in cash plus paid $10,000 of broker's fees. On that date, Freeze Company's assets and liabilities had a book value equal to market value except for their building which had a market value which was $80,000 higher than its book value and had a 20-year remaining life. 2021 a. Purchased 60,000 shares of Freeze Company's $10 par common stock for $26 per share in cash plus paid $10,000 in broker's fees.. b. Received $30,000 in cash dividends. On December 31, 2021: 1. Freeze Company's stock had a market value of $25 per share. с. 2. Freeze Company reported net income of $400,000. 2022 d. Received a 10% stock dividend. On December 31, 2022: 1. Freeze Company's stock had a market value of $24 per share. е. 2. Freeze Company reported net income of $500,000. Assume the 60,000 shares you purchased represented 30% of the outstanding shares of Freeze Company so you were using…
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e of cents Price Company purchased 90% of the outstanding common stock of Score Company on January 1, 2016, for $450,000. At that time, Score Company had stockholders' equity consisting of common stock, $200,000; other com $160,000; and retained earnings, $90,000. On December 31, 2020, trial balances for Price Company and Score Company were as follows: Price $ 109,000 $ Cash Accounts Receivable Note Receivable Inventory Investment in Score Company Plant and Equipment Land Score 78,000 94,000 -0- 166,000 75,000 309,000 158,000 450,000 -0- 940,000 420,000 160,000 70,000 70,000 50,000 822,000 242,000 250,500 124,000 Dividends Declared Cost of Goods Sold Operating Expenses Total Debits Accounts Payable Notes Payable Common Stock $3,351,500 $1,236,000 $ 132,000 $ 46,000 300,000 120,000 500,000 200,000 260,000 160,000 Other Contributed Capital Retained Earnings, 1/1 Sales Dividend and Interest Income Total Credits 687,000 1,420,000 52,500 $3.351,500 $1,236,000 210,000 500,000 -0- Price…
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